Casino Capitalism Blurs the Line Between Gambling and Investing

Heading to the New York City subway in September, Mahesh Saha placed a supercharged bet on a volatile stock. Saha, a 25-year-old law student, tapped a phone app and bought $128 worth of bullish options, the right to purchase shares of uranium producer Cameco Corp. for $80 within the week. If they surged above that level, he could make many times his initial investment. If they didn’t, the options would expire, worthless—a total loss.

That day investors grew more optimistic about Cameco. So, less than 90 minutes later, Saha cashed out his options, for an 84% profit, he says. On ...